Chewy Inc Share Price Surpasses Analyst Target; Market Reactions Follow
Recently, shares of Chewy Inc (Symbol: CHWY) exceeded the average analyst 12-month target price of $39.52, trading at $39.57 per share. Analysts typically face two options when their target is reached: downgrade the valuation or adjust the target price upward. Their reactions can also depend on recent business developments that may be influencing the stock price. Strong indicators for the company could warrant an increase in the target price.
Analyst Targets and Variability
Within the Zacks coverage universe, 23 different analyst targets contribute to Chewy Inc’s average. However, this average represents a mathematical midpoint, where some analysts have lower expectations—one targets a price of $27.00—while another sets a much higher target of $47.00. The standard deviation stands at $5.255, indicating variability among analyst forecasts.
Assessing Potential Future Growth
Investors look at the average price target to gain insights from multiple analyses, rather than relying on a single expert opinion. As CHWY has surpassed the average target price of $39.52, it’s an opportune moment for investors to evaluate the company further. They must consider whether $39.52 is merely a temporary milestone on the way to a higher target or if the valuation is becoming too stretched, prompting a reevaluation of their investments.
| Recent CHWY Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 19 | 19 | 19 | 20 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 8 | 8 | 7 | 7 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.61 | 1.61 | 1.56 | 1.54 |
The average rating shown in the last row of the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 represents a Strong Sell. This article utilized data from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
